BSP Explores Further IMF Participation
The Bangko Sentral ng Pilipinas (BSP) is likely to improve its creditor position in the International Monetary Fund (IMF) as one of its options to enhance reserves management.
“Our IMF commitments are, in fact, investments of the BSP,” said BSP Governor Diwa C. Guinigundo. The IMF credit facilities to which the Philippines is a participant pays interests to the central bank and returns the revolving credit. “They pay interests so that’s part of reserve management,” he said.
The Philippines has two credit arrangements with the IMF that are renewed quarterly and typically lasts 18 months. These are the Financial Transactions Plan (FTP) and New Arrangements to Borrow (NAB).
The Philippines has a floor amount participation in the FTP amounting to Special Drawing Rights (SDR, the IMF’s reserve assets) 307.6 million equivalent to $462 million. The country’s quota available resources in the IMF could reach up to SDR 711.7 million or $1 billion.
Source: Manila Bulletin
